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What Kind of Ancestor Will You Be?

Sep 26, 2013• 4

By Jack Cochran, MD

Is excellent good enough?

As physicians, we are trained to diagnose and treat disease. We dedicate ourselves to searching for cures and perfecting procedures that will restore the health of our patients. Over the last 50 years, we’ve made some remarkable progress. We’ve reduced the death rate from heart disease by 32.5% with a better understanding of primary and secondary prevention and advances in treatment. We’ve made similar progress in cancer care with better treatment options through radiation, surgery, chemotherapy, and genomics. We’ve changed an HIV diagnosis from a hopeless death sentence with limited treatment options to a manageable, chronic condition.

These truly excellent accomplishments in medicine have been life-changing for millions of people. But is excellent good enough?

While we have made great strides in clinical care, the American dream is faltering. Americans are more obese, more medicated and more in debt than at any other time in the history of our nation. One-third of our nation’s total health-care spending, about $750 billion per year, is wasted on unnecessary treatments, redundant tests, and uncoordinated care [1]. Health Care Reform will have limited impact on this waste. While the rate of increase of health care spending has slowed in recent years, the United States still spends 2.5 times more than most developed nations on health care [2]. U.S. health care spending is on track to reach $4.8 trillion in 2021, almost 20% of our gross domestic product [3].

Five Must-See New Technologies for Hospitals at Health 2.0

Sep 26, 2013• 3

By Lori Houston

More than ever, hospitals are squeezed by demands to reduce costs, operate more efficiently, improve patient safety and outcomes, reduce readmissions, and earn high patient satisfaction ratings. We’ve entered an era where accountable care and pay for performance increasingly dictate hospital revenues.

While technology alone can’t enable hospitals to meet their challenges, there’s a burst of innovation around health tech tools that offer hospitals new pathways to harnessing data, managing performance, and providing better care all around.

What better opportunity for hospital CIOs and CTOs to get a close look at emerging possibilities than the upcoming Health 2.0 2013 Fall Conference?

Here’s a sampling of five budding technologies with game-changing potential for hospitals.

Health Recovery Solutions’ has developed a care management system that scores discharged hospital patients on their re-admission risk daily and intervenes when necessary. The tools are built around a software platform on tablets that patients take home, enabling interaction with trained health coaches and nurses who can intervene when needed.

Catch a demo as part of Health 2.0’s Improving the Inpatient Experience: Tools for Hospitals, a breakout session demonstrating new and dynamic ways to break the structural cycles underlying readmissions.

How to Cut Medicare Spending: Attack Large Claims!!

Sep 26, 2013• 4

By Bob Hertz

Medicare reform thus far has been focused on $79 office visits, co-payments for home health care, hospital readmissions, Miami infusion clinics, the price paid for scooters, $45 resting EKG’s, the Plan B deductible, etc. These are important areas to pursue — but they are not where the real money is.

While we are debating the ‘doc fix’, the drug companies, device companies and hospitals are backing up the truck and cleaning out the store!

Consider the following paid claims paid by Medicare in Indiana in 2011:

113 Heart Transplants: average payment was $773,877 a piece
96 Bone Marrow Transplants: average payout was $509,637 apiece
129 Liver Transplants: average payout was $367,000 apiece
2,200 Tracheostomies: average payout was $376,103 apiece
1,517 Open Heart Surgeries: average payout was $185,000 apiece

Altogether, the 12,000 largest claims in one state totalled $2.4 billion in Medicare spending. If the other states are consistent, then large claims like these ate up $120 billion of Medicare’s total spending of $545 billion. And when you factor in sepsis treatments, defribillator-implants, and similar claims that cost “only” $75,000 each and so did not make the above list…….. then almost two-thirds of Medicare spending — over $300 billion a year — is focused on just ten percent of beneficiaries.

Disruptive Innovation and the Affordable Care Act

Sep 26, 2013• 19

By Ben Wanamaker

This post highlights the findings of a paper released today by the Clayton Christensen Institute, “Seize the ACA: The Innovator’s Guide to the Affordable Care Act.”

Since its passage in 2010, the Patient Protection and Affordable Care Act (ACA) has been analyzed by experts from nearly every political, economic, and health policy angle possible. Yet in the noisy debate about whether the legislation is good or bad and whether to implement or repeal it, we think there’s something missing: a rigorous but practical discussion of the innovation opportunities created by the legislation and the barriers to innovation it imposes.

To facilitate that goal, we analyzed the ACA through the lens of the theory of disruptive innovation. First articulated by Harvard professor Clayton M. Christensen, disruptive innovation theory explains how innovations that decrease cost and increase accessibility transform entire industries.

As existing products increase in performance and begin to exceed customer needs (think of next year’s biggest Cadillac model), low-cost, lower-performance alternatives created by new entrants take root in the low end of the market (think of next year’s smallest Kia model).

These new products are initially inferior in comparison to established products, but they become better and better until they “disrupt” and eventually topple larger incumbent competitors.

So how does the ACA affect the pace of disruptive innovation in health care? What opportunities does it create for innovators? What barriers does it inadvertently erect? Here are a few thoughts from our recent paper.

Exponential Health Technology Bringing Personal “Check Engine Lights”

Sep 25, 2013• 8

By Daniel Kraft

Daniel Kraft is the Exec. Director of FutureMed and on the scientific Advisory Board for the Nokia Sensing XCHALLENGE which will be judged and have its award ceremony at the Health 2.0 Annual Fall Conference next Wednesday, October 2nd.

It sometimes seems that the world is speeding up, and it’s often hard to remember how quickly things are changing in our everyday lives. The relatively slow, expensive technologies of the 1970s and 80s are now essentially ‘free’ features that have dissolved into our exponentially more powerful devices. GPS with navigation directions, video and still cameras, online encyclopedias and the like would have separately cost over $500K 20-30 years ago. As inventor, futurist and Singularity University co-founder Ray Kurzweil likes to point out, a kid in Africa with a smartphone today has more access to information than the U.S. president did 15 years ago.

I recently found (via Twitter) this delightful and insightful story about a couple, both born in 1986, who have two young children. The couple, inspired by their son’s propensity to play on an iPad instead of outside on a nice day, have chosen to revert their life to 1986 levels of technology. No cell phones, no Google, no email, no tweets, no SMS…. So now they read books, develop rolls of film, and look things up in Encyclopedia Britannica. Watching this family, we might wonder how we got through the day and communicated and coordinated with our friends and family.

What Your Employer Is Secretly Thinking As Obamacare Goes Live

Sep 25, 2013• 18

By Kip Piper

Employers face a multitude of challenges under the Affordable Care Act (ACA). The ACA fundamentally changes the landscape for employer sponsored health insurance, forcing businesses to understand, navigate, and adapt to a quickly changing, highly complex, and still uncertain marketplace for health benefits. To illustrate this, here are 10 pain points employers face in dealing with Obamacare:

1. Explaining ACA to Employees, Dependents, and Retirees:
Effective internal communications is a strong indicator of a firm’s financial performance. Indeed, internal communications is an essential ingredient for an engaged, productive workforce with low turnover. This is all the more important under the dynamics and complexities of the ACA.

Every employer must be prepared to explain the ACA. Like it or not, employees will look to their employer to explain the Affordable Care Act, even if the employer is not changing benefits. Employees have friends and family who will need help understanding Obamacare. The airwaves, mail boxes, and street corners will be packed with messaging from all angles and interests – some pro, some con, some partisan, some factually wrong, some even fraudulent, much of it confusing, and all of it mind numbingly complex.

This is an enormous new opportunity for employers to beef up their internal communications, demonstrate leadership, and support employees and their families. This will also serve to boost a company’s external reputation since the help and information provided to employees and retirees will be shared by them with a much wider audience – their parents, children, spouses, siblings, friends, and neighbors.

However, when communicating and educating, given the dynamics and contentious nature of Obamacare, employers must also take into consideration the political leanings of most employees and other key stakeholders, such as the board of directors and state and local leaders. This is not a factor in most employer benefit issues but the ACA is entirely different.

2. Making Tough Decisions on Coverage and Benefits:
While making tough decisions on benefits is nothing new for employers, the ACA presents a new set of decision points. Every business has their own starting point – what, if anything, they were already offering, who they were covering, and how much they were contributing financially to the cost of coverage.

For those employers that were not providing full-time workers with health coverage before, the ACA creates a new pay-or-play decision for those with more than 50 full-time workers. For every employer, the ACA creates a strong financial incentive to either drop coverage, dial-down employer contributions, or move to defined contribution.

Moving Beyond the Quantified Self

Sep 25, 2013• 2

By Kim Krueger & Sophie Park

In a world where big data plays an important role of monitoring individual health care and wellness, Health 2.0’s CEO and Co-Founder Indu Subaiya had an exclusive interview with Christine Robbins, CEO of BodyMedia on the future of health care in the marketplace as well as the role of big data. As we all know, BodyMedia was recently acquired by Jawbone – and we’re excited to have Christine joining us on the famous “3 CEOs” panel at the Health 2.0 Annual Fall Conference next week to tell us more about it.

Here’s a preview of what you should be looking forward to.

Indu Subaiya: We’re really excited for the Health 2.0 7^th Annual Fall Conference and of course, I’ve been following news about you and BodyMedia over the last two months, which is really exciting. Congratulations on the acquisition.

Christine Robbins: Thank you. We’re on to the next chapter.

IS: That’s just amazing to me because BodyMedia in and of itself has had so many chapters and we’ve followed you almost from the very beginning. But what would be great is [if you could give] us an overview of the last year. When we saw you at Health 2.0 last — what you were beginning to present at the earliest stages, I believe, were data that BodyMedia had collected that could then be used in partnership with health plans and larger healthcare organizations.

Did We Get It Right? A Behind the Scenes Look at California’s Healthcare Strategy

Sep 25, 2013• 5

By Dan Diamond

Back in 2010 — before two elections, before the Supreme Court ruled, before the word “crisis” stopped following the words “California budget” — Kim Belshé settled on a guiding principle: “2014 is tomorrow.”

And now, it almost is.

The Affordable Care Act’s individual mandate takes effect in less than 100 days. The nation’s health insurance exchanges go live next week.

And for nearly a year, Belshé — secretary of the Health and Human Services Agency under former Gov. Arnold Schwarzenegger — was at the center of California’s efforts to begin implementing those Obamacare provisions and many others.

I interviewed Belshé, Schwarzenegger, and nearly a dozen other ex-officials and experts about whether California’s quest to lead the nation on ACA implementation actually paid off — and what it brought the state.

Why California? Why Not?

Every expert suggested that the ACA’s rapid implementation in California could be traced back to Schwarzenegger’s efforts in 2007 and 2008 to enact universal health care.

(And in some cases, even older efforts at reform. “We learned a lot from the 1990s,” says Belshé, noting that failed attempts to create purchasing cooperatives in California helped set the foundation for designing insurance exchanges more than a decade later.)

Although the Schwarzenegger plan ultimately failed, many of its components — from big elements like the exchanges to smaller pieces like guaranteed issue — ended up in the ACA. And because state leaders had already done much of the foundational work, they were better positioned to speedily roll out the national law.

Daniel Zingale, senior vice president of the California Endowment, says that Schwarzenegger’s efforts were a preview of the national ACA battle to come — which meant that many stakeholders in California had already made peace with the law’s key provisions by 2010.

“We’d had our big fights over the individual mandate here” in 2007 and 2008, says Zingale, a former health care aide to Schwarzenegger. “Democrats and labor groups had been through it [and] were ok with it.”

“But the nation hadn’t been through that yet.”

Still, California’s support for Obamacare was hardly assured. As late as January 2010, Schwarzenegger wavered on the ACA — but by April that year, he was the first Republican governor (and one of the first governors in the nation) to throw his support behind the law and begin crafting a framework for implementation.

“It gave us a bit of a head start,” Belshé acknowledges.

What the SNAP Cuts Actually Mean

Sep 25, 2013

By Lua Wilkinson

Last week House Republicans voted to cut benefits to the Supplemental Nutrition Assistance Program, or SNAP, slashing $39 billion in benefits over the next ten years in a vote of 217 to 210. All members of the Democratic caucus voted against the bill, which would affect 4 million people.

In June, fiscal conservatives squashed the Farm Bill that would have cut spending by $20 billion over ten years after determining the decrease was too meager. This new bill is their response to that. If successful, half of the cuts will put a stop to food aid after three months to people between 18 and 50 with no minors living with them if they are unable to find work, a move that makes little sense.

Poverty and health are inextricably linked, and food security plays a central role in this. Not only does poverty affect a family’s ability to buy food, it prevents them from buying healthy food. In the United States, lower income individuals are more likely to be obese, putting a strain on the healthcare system. Currently, beneficiaries of SNAP are eligible for SNAP-Ed, a nutrition education program designed to promote healthy eating on a limited budget. It is unclear how these cuts will affect SNAP-Ed.

African-Americans, no strangers to health inequalities, will be disproportionately affected by this change if successful. A new study shows that 90 percent of African-Americans benefitted from food stamps at one point or another in their lives. One in four African-American households faces food insecurity, and make up about 23% of all SNAP recipients.

Who Will Solve Healthcare For Our Parents And Grandparents? Probably Not Google.

Sep 25, 2013• 13

By Leslie Kernisan, MD

I assume by now that you’ve heard the news: Google wants to tackle aging. Specifically, they announced this week the launch of Calico, “a new company that will focus on health and well-being, in particular the challenge of aging and associated diseases.”

Because, says Larry Page, with some “moonshot thinking around healthcare and biotechnology, I believe we can improve millions of lives.”

“Can Google Solve DEATH?” shrieks a TIME cover.

Google’s goal, it seems is to find ways to extend human lifespan and essentially stave off aging.

Coincidentally, on the same day Physician’s First Watch directed me towards this NEJM editorial, announcing that NEJM and the Harvard Business Review are teaming up on a project on Leading Health Care Innovation.

Here is the paragraph that particularly caught my eye:

“The health care community and the business community today share a fundamental interest in finding ways to achieve higher value in health care. The ultimate objective for both communities is to keep people healthy, prevent the chronic illnesses that consume a large fraction of our health care dollars, use medical interventions appropriately and only when needed, and create an economically sustainable approach to the delivery of health care. While we want to foster innovation and novel therapies against disease, we also recognize that, whenever possible, prevention of disease before it is established is the better solution.” [Emphasis mine.]

And therein lies the rub. Whether it’s Google or a high-powered partnership between NEJM & HBR, everyone is enamored of prevention and innovative cures.

Let’s prevent those pesky chronic diseases! Let’s cure aging!

Ah, spare me.